[HN Gopher] The quiet death of Ello's big dreams
       ___________________________________________________________________
        
       The quiet death of Ello's big dreams
        
       Author : waxpancake
       Score  : 246 points
       Date   : 2024-01-18 16:35 UTC (6 hours ago)
        
 (HTM) web link (waxy.org)
 (TXT) w3m dump (waxy.org)
        
       | kristopolous wrote:
       | Social networks and marketplaces are the hardest things to get
       | going
        
         | edhelas wrote:
         | *centralized and siloed social-networks
         | 
         | Federated, standard and decentralized network just live by
         | themselves :)
        
           | forbiddenvoid wrote:
           | That doesn't make sense. Federated social networks have the
           | same hard problem as centralized ones: social networks
           | require people.
           | 
           | The part that's hard is the people, not the technology.
           | Centralization and federation have nothing to do with it.
        
         | myfriendnewton wrote:
         | That's one of the things that makes Ello's story a bit sad. It
         | started out as a community of people that had this natural
         | gravity, and the early community was admirably dedicated to the
         | experiment.
        
       | unsupp0rted wrote:
       | > After leaving Ello in 2016, Budnitz returned to his Kidrobot
       | roots with the launch of Superplastic in 2017, a vinyl figure
       | company that expanded into NFTs and the metaverse in 2022,
       | raising a total of $68M in seven rounds of funding, led by
       | Amazon. Superplastic appears to have abandoned its NFT projects
       | last year as the market cratered, and Budnitz stepped down from
       | his CEO role in September, replaced by the former president of
       | blockchain gaming company Dapper Labs. They are now focused on
       | "synthetic celebrities" and AI influencers.
        
         | SpaceNoodled wrote:
         | Grifting is more lucrative than ever!
        
           | hn_throwaway_99 wrote:
           | I thought this recent article was so insightful:
           | https://news.ycombinator.com/item?id=39014737
        
         | ilrwbwrkhv wrote:
         | This is the game. Raise money, steal it, let the company go to
         | the dogs.
        
           | TaylorAlexander wrote:
           | I am often jealous of the people who make huge sums of money
           | grifting investors, but the thing is I care too much about
           | what I do and I'd be bad at pretending I don't.
           | 
           | The flip side is I instead love what I do and I'm very proud
           | of my work, which I don't think someone could really say if
           | they're shilling crap like plastic toys and NFTs. Or maybe
           | they could say that, but I never could. Grifting is just not
           | for me.
        
             | EdwardDiego wrote:
             | I used to work in public service (in chronological order,
             | ranger, social security, LLC incorporation and radio
             | spectrum licensing and management) before jumping into
             | software with glee.
             | 
             | And I have the exact same thought about providing software
             | for government and other large organisations.
             | 
             | The number of "solutions" my public service employers paid
             | millions for, that didn't fucking work properly or reliably
             | is mental.
             | 
             | I'm really not sure how contracts keep getting signed by
             | big organisations that don't impose massive penalties on
             | providers for failure, but it they do. Or the sister org
             | that finally had enough and wanted to switch providers, and
             | had to go to court in order to be even be able to pay a
             | large amount for the IP rights to the source code of their
             | system, because they'd signed a contract that let the
             | provider retain IP, and the provider really liked that
             | sweet sweet taxpayer money for buggy bollocks. So
             | naturally, when they contracted HP to maintain the system
             | they ensured that the contract retained IP ownership for
             | their org.
             | 
             | Haha, no, I'm kidding, they let HP keep IP rights on
             | changes HP made, and later on had to fight HP in the courts
             | so they could pay HP for the source to switch providers
             | again after getting sick of being charged $2K (USD) by HP
             | to update the text of a single link on a website.
             | 
             | And I keep thinking that I'd very much like to be in the
             | market of earning millions by providing broken software to
             | people making big decisions who aren't competent enough to
             | jump to private sector, broken software is easy.
             | 
             | But then the guilt of stealing taxpayer money kicks in
             | (it's not legally stealing, but morally, it's stealing. As
             | the saying kinda goes, any great criminal needs a great
             | lawyer, a great accountant, and a corporation), as well as
             | the guilt of professional ethics.
             | 
             | (What's the old joke about software ethics? An ethical
             | programmer would never write a function called
             | destroyBaghdad, they'd write a function called destroyCity
             | and pass Baghdad as a parameter.)
             | 
             | But look at Birmingham Council in the UK, bankrupted by
             | shit software and Oracle's fearsome legal team. The entire
             | fucking disgrace that is Horizon (although being fair to
             | Fujitsu, nearly all of the evil was on their customer's
             | side, it was only aided and abetted by Fujitsu employees
             | lying in court).
             | 
             | In my country, IBM sued our government (and won) because
             | IBM wanted to be paid even more for not delivering a
             | massively expensive and broken project to the Police
             | (INCIS), more recently our Education dept spent $180
             | million on a payroll system called Novopay (they also paid
             | the provider Talent2 to administer payroll with it) that
             | was terribly broken and underpaid some teachers (and
             | perhaps more egregiously, slightly overpaid some teachers,
             | then the provider would eventually realise and demand the
             | teacher repay the overpayment be returned in full in a
             | short timeframe or debt collectors would be brought in, and
             | threats of civil litigation or criminal complaints were
             | used to pressure them) to the extent that teachers had to
             | go on strike to get the government to take it seriously.
             | 
             | Eventually the government took back the admin side of it,
             | and then gave Talent2 another $45 million to get the system
             | working, and are still paying them to maintain it today.
             | 
             | The idea of being in a market where delivering badly broken
             | software leads to you getting paid another 25% of the
             | upfront cost to get it actually working, and you don't get
             | fired, is wild.
             | 
             | I suppose there's a reason that Oracle and similar are
             | described as law firms that incidentally write software,
             | but damn, they make crypto grifters look like complete
             | amateurs.
             | 
             | And I'll begrudgingly admit that Oracle et al are selling a
             | product with actual utility at least, as opposed to NFTs
             | which I'd call digital tulip bulbs, but that is mean to
             | tulip bulbs because they can at least be used to grow
             | flowers.
             | 
             | I've seen 0 use cases for NFTs / ICOs that aren't
             | gambling/unhinged speculation (usually with some fraud
             | involved to make Number Go up to suck in the rubes), or
             | just good old fashioned direct to the consumer fraud
             | dressed up in complicated jargon.
        
           | StreetChief wrote:
           | > CEO Harry Stonecipher, a cutthroat corporate operative who
           | liked to say, "You can make a lot of money going out of
           | business." - https://jacobin.com/2024/01/boeing-malfunction-
           | ceo-pay-stock...
        
       | NetOpWibby wrote:
       | This post is a long-ass "told you so" and honestly, I'm here for
       | it. I too had an Ello account and thoroughly enjoyed its
       | minimalist nature.
       | 
       | VC money really seems like the beginning of the end.
        
       | ErikAugust wrote:
       | "But a little digging shows a much more predictable source: they
       | took a $435,000 round of seed funding in January from FreshTracks
       | Capital, a Vermont-based VC firm that announced the deal in
       | March."
       | 
       | People forget (or mostly never knew) that Ello was a Vermont
       | thing.
       | 
       | I once spitballed with a certain VC at FreshTracks Capital about
       | an idea I had, which lead to him running off with it and burning
       | millions of dollars making it into BRIDJ, which shut down a few
       | years ago.
        
         | myfriendnewton wrote:
         | > People forget (or mostly never knew) that Ello was a Vermont
         | thing.
         | 
         | True, but a little misleading. The majority of the co-founders
         | of Ello, plus nearly all of its staff, were based in Colorado.
         | 
         | Source: I worked for Ello.
        
           | dopeboy wrote:
           | Well now I have to ask - what was it like inside the
           | cauldron? Any learnings you took into your next step?
        
             | myfriendnewton wrote:
             | It was my favorite job I've ever had. It was intense in the
             | best way. I didn't have much contact with Budnitz, but the
             | other 6 founders showed such a strong passion for the
             | community, it was impossible for me to not to come to work
             | excited.
             | 
             | I'd say most of the negative stress I felt was from knowing
             | that the user base was growing faster than we could fill in
             | feature gaps that would keep folks engaged. I felt like we
             | couldn't quite catch up, and by the time the money started
             | running out and interest started to wane, it was too late.
             | 
             | A few learnings:
             | 
             | - 7 founders is a lot. I don't want that to sound like a
             | criticism, it just means the company is going to feel a bit
             | different vs a more classic 2 or 3 founder setup.
             | 
             | - Positive feedback loops within a tight team of highly
             | skilled people has a huge impact on getting more stuff
             | done. That's how I would characterize the engineering team,
             | and it was one of the highest-performing teams I've ever
             | been a part of.
             | 
             | - Don't build a startup on a custom, in-house UI framework
             | ;)
        
       | cole-k wrote:
       | Even the supposedly indie anti-social social media outright
       | violated their own manifesto. Is it any surprise that we're
       | skeptical of the big promises of a bright future that
       | corporations make all the time?
       | 
       | I'm curious to know if anyone has evidence of a post similar to
       | this but for a company with a (so far) happy ending.
        
         | spencerflem wrote:
         | I would have said bandcamp, until recently
         | 
         | Itch.io continues to be great, for now
        
         | gwern wrote:
         | I'm interested about the public benefit corporation part here.
         | Did the PBC status wind up changing anything at all here? How
         | does a PBC sell itself or get acquired? How is a PBC supposed
         | to terminate or wind down? If they violate their charter as
         | Ello may have, who exactly enforces it or file a lawsuit, and
         | what is their compensation?
        
           | komadori wrote:
           | I suppose if the PBC was in debt then it could sell its
           | assets, such as the Ello site, to pay its creditors and then
           | dissolve.
        
           | renewiltord wrote:
           | When ICANN was in danger of violating charter, CA AG was the
           | one who enforced on them.
        
           | steveklabnik wrote:
           | Nobody should trust my opinion, I am not an attorney, let
           | alone one specialized in this area.
           | 
           | In my understanding, a PBC is effectively the same as a for-
           | profit company with regards to these sorts of things. Unlike
           | a non-profit, a PBC has stock, which it can sell, so that's
           | how it would get acquired. I believe that there were even
           | some PBC SPACs back when that was fashionable.
           | 
           | > If they violate their charter as Ello may have, who exactly
           | enforces it or file a lawsuit, and what is their
           | compensation?
           | 
           | The only real thing a PBC does is change "shall maximize
           | shareholder value" to "shall be managed in a manner that
           | balances the stockholders' pecuniary interests, the best
           | interests of those materially affected by the corporation's
           | conduct, and the public benefit or public benefits identified
           | in its certificate of incorporation." See here for Delaware:
           | https://delcode.delaware.gov/title8/c001/sc15/
           | 
           | So it would look like any other shareholder grievance against
           | management in form.
        
             | otteromkram wrote:
             | More PBC vs non-profit info[0]:
             | 
             | > Benefit corporations are neither nonprofits nor hybrid
             | nonprofits. Benefit corporations are for-profit
             | corporations that need to consider stakeholders, morals, or
             | missions in addition to making a profit for their
             | shareholders. Nonprofits can't be benefit corporations, but
             | they may create one. Due to the public benefit purpose
             | provisions, expanded fiduciary duties of administrators,
             | and extra shareholder rights created within the model
             | benefit corporation laws, this structure may be helpful to
             | operate and scale the earned-income activities of a
             | nonprofit.
             | 
             | [0] https://www.upcounsel.com/public-benefit-corporation
        
             | singleshot_ wrote:
             | Where in that document are you seeing that non P.B.C.
             | corporations are required to maximize shareholder value?
        
               | steveklabnik wrote:
               | This document only talks about PBCs, so it wouldn't be in
               | this document. I am using that phrase because that's how
               | people refer to fiduciary duty when speaking generally.
               | Obviously there is a lot of complexity in the rules
               | around corporate governance.
        
         | creer wrote:
         | In a slightly broader manner, free software forking has been
         | working out reasonably well: When the original branch goes off
         | the rails, others can take over from a previous "known
         | manageable" point. Forking leads to fractioning the user base
         | but kinda, that's the point.
        
       | mawise wrote:
       | I started building an open source private blogging system[1] when
       | my first kid was born, and it eventually evolved into the
       | skeleton of a social network--but fully decentralized using RSS
       | and self- (or paid-) hosting. I concluded the only way for a
       | network to actually avoid selling out was for there to be nothing
       | to sell. If I give away the software, and don't control the
       | network then there is no need for users to trust me. It continues
       | to be an interesting journey as a side-project (not raising money
       | means I'm still working a day-job).
       | 
       | [1]: https://havenweb.org
        
         | gameshot911 wrote:
         | FYI, clicking the "Try the Demo" button doesn't do anything for
         | me in Chrome or Firefox.
        
           | mawise wrote:
           | Well that's awkward. Thanks for the tip--fixed now.
        
         | ilrwbwrkhv wrote:
         | Most of these platforms will never reach "popular" scale.
         | 
         | You need to think about the killer article or feature.
        
       | dopeboy wrote:
       | I'm a recovering founder after winding down my startup a couple
       | months ago. I've been thinking about getting back on the saddle
       | and in service of that, meeting with folks who could be potential
       | co-founders.
       | 
       | One of the first ~5 questions I ask is whether they want to
       | bootstrap or go down the VC route. Because they are very
       | different paths, with different levels of pressure and mostly
       | importantly, expectation.
       | 
       | You _have_ to know that from the outset, else it's just trouble.
        
         | laurex wrote:
         | Bootstrapping social tech ain't easy. Expectations that this
         | tech is free, plus the immediate need for support and safety
         | for general populations mean that it's very different than say,
         | B2B SaaS.
        
           | dopeboy wrote:
           | Good points - social communities have less of an autopilot
           | component than b2b SaaS.
        
       | micromacrofoot wrote:
       | It's a shame that it's completely lost, they had some interesting
       | layout conventions and it was kind of fun to browse images even
       | in the later days.
       | 
       | The network never really caught on, but there was some good work
       | being done there.
        
       | hn_throwaway_99 wrote:
       | I thought this was a fantastic post. I think it really dovetailed
       | with what I've been thinking a lot about recently regarding my
       | disillusionment with tech (or, rather, with big tech companies).
       | 
       | I think everyone should understand (and, honestly, repeat daily)
       | that in our modern capitalist system where never-ending growth is
       | an _expected requirement_ of any company that has ever taken
       | outside funding, it is simply an impossibility for a company to
       | have any kind of durable values that conflict with that growth-
       | at-all-costs requirement. It 's as much of an impossibility as
       | the sun rising in the west, and we should stop any pretense that
       | it's not. Enshittification is _inevitable_.
       | 
       | Nearly every tech company starts out similarly: an absolute laser
       | focus on users and their needs, because that is how you first
       | grow. At some point, though, all of that fruit is picked, and you
       | then start going into features that are "user neutral" but that
       | make money, until finally you chip away at features that look
       | like they can be user neutral in the short term ("We A/B tested
       | and nobody minded one more ad!"), but the long term effect is
       | that you've completely destroyed your founding ethos.
       | 
       | For example, it's easy to pick on Google these days because it's,
       | well, so easy. Their total about face from a company that was
       | nearly universally loved by engineers to one that, if not
       | loathed, is at best seen as the "next IBM" is so obvious. E.g.
       | Google got huge originally with a world-first search engine by
       | not "selling out", by not masquerading ads as organic search
       | results. Now when I search for any remotely commercial term the
       | entire first page is ads that are nearly indistinguishable from
       | organic results.
       | 
       | It's not just Google, though. Apple loves to crow about user
       | privacy, but it's hard to square this "value" with their
       | insistence that anyone on iOS who uses iMessage to talk to anyone
       | on Android gets 0 encryption (oh, and if even a single Android
       | user is in a group chat, nobody gets encryption).
       | 
       | I don't think that makes any company "evil", but it does make it
       | somewhat sociopathic in the sense that there can ever only be a
       | single goal: growth at all costs. The sooner we all recognize it
       | means we can treat all companies with an appropriate level of
       | caution. One final note related to this, is that this is one
       | reason I'm not really a fan of PBCs as mentioned in the article.
       | PBCs are a smoke-screen. As the saying goes, "Follow the money".
       | When push-comes-to-shove you'll also see PBCs compromise their
       | "values" the second growth starts to be at risk.
        
         | ajhurliman wrote:
         | Yes, this is a tech thing in particular. You don't see VC being
         | raised for a plumbing company, they'll get an SBA loan or
         | bootstrap. They don't need to grow 10x every year, if the
         | owners can pay their bills and send their kids to college
         | they're happy.
         | 
         | And plumbing is such a constitutionally important thing: having
         | hot, running water and not having feces in your house is so
         | much important than seeing what that guy from high school is up
         | to.
         | 
         | I think the issue lays with how high-variance tech is due to
         | the scale: either it is marginally profitable at a massive
         | scale and is worth billions of dollars, or you have something
         | that is unprofitable at any scale and is worthless. It's like
         | there's all of the sudden (in the last 15 years) become an
         | appetite for throwing fortunes onto a roulette table (which may
         | be giving better odds than a lot of VCs).
        
           | mandevil wrote:
           | Two things here.
           | 
           | One is that the marginal cost of software(1) drives this
           | pattern of winners and losers. The first user of any software
           | costs an enormous amount of money to actually write the
           | software and deliver it to customers. The 100th user costs
           | basically nothing once you have 99 others. And the millionth
           | user (or billionth) user costs basically nothing as well(2).
           | That in turn means that having a billion users is a lot more
           | profitable than having a million users, which means that if
           | you have a billion users you can afford to do things that the
           | million user system can't- e.g. free webmail and a really
           | good free internet browser, just to name two things picked
           | completely at random and not having any particular company in
           | mind.
           | 
           | The other point is explaining your comment about the "last 15
           | years": tech's dominance (really, growth's dominance) is
           | really an artifact of zero-lower-bounds interest rates from
           | the 2008 financial crisis. If interest rates are zero (for
           | discounted future cash flow computations) then I am
           | indifferent about a dollar today versus a dollar in 2075. So
           | someone who can argue that they have a 5% chance of being
           | worth a trillion dollars in 2075 is worth a lot (0.05 * 1T=50
           | billion) when interest rates are zero, but if interest rates
           | are high (or even, honestly, normal- like 2-3%) then that
           | money is discounted heavily and the growth story doesn't
           | matter as much because dollars today are worth a lot more
           | than dollars in 2075. So if interest rates are zero, future
           | growth will dominate the stock market (which was why 'tech'
           | did well) but when interest rates are more normal, different
           | companies can dominate the stock market (where the
           | fundamental valuation of a company is, roughly, the expected
           | value of future cash-flows discounted to the present).
           | 
           | 1: Delivered by the internet- physical media distorts this a
           | bit and behaves more like normal retail goods.
           | 
           | 2: Exceptions for certain points in the growth curve where
           | some key system falls over and needs to be rapidly replaced,
           | e.g. storage or compute or whatever, but outside of those
           | it's very cheap growth. Plumber company growth is limited by
           | the number of trained plumbers you can hire- you can only
           | have 1 plumber make so many house calls in one day- but
           | software just replicates at zero out to infinity (again
           | modulo some key systems which can't handle the load).
        
       | r3trohack3r wrote:
       | I remember when tech twitter (or at least Node.js twitter) tried
       | to migrate to Ello for like a week.
       | 
       | A pretty good portion of my social network moved, myself
       | included. But it fizzled out really quickly and we all ended up
       | back on Twitter.
       | 
       | Every once in a while I'd still get a notification from Ello that
       | someone had followed me. It was always a porn bot, but the email
       | notification was still nostalgic. A part of me is sad the site
       | died.
        
         | unsupp0rted wrote:
         | I remember when something-something twitter tried to migrate to
         | Threads for like a week.
         | 
         | And to Mastodon before that.
         | 
         | Remember when tech Reddit tried to migrate to Lemmy?
         | 
         | A hardcore handful of people migrate await from the Death Star
         | and stay migrated (maybe a couple hundred medium accounts, and
         | 1 or 2 bigger ones), but everybody else trickles back onto the
         | Death Star eventually.
         | 
         | The only thing that works to get people permanently migrated
         | away is complete enshitification of the existing platform (i.e.
         | Digg effect). Partial enshitification isn't enough.
        
           | Earw0rm wrote:
           | Twxttxr is getting pretty close now - maybe in some ways
           | surpassing Digg in awfulness.
           | 
           | Specifically the massive level of pornbot traffic, and
           | algorithm changes that seem to be intentionally surfacing
           | posts to adversarial users who will then go on the attack.
        
             | unsupp0rted wrote:
             | The porn bots are pervasive and easily identifiable
             | programmatically.
             | 
             | That they persist must mean that X wants them to persist.
        
           | senkora wrote:
           | Mastodon and Lemmy do feel different to me, because of the
           | decentralization.
           | 
           | They are providing a foundation that gets built upon with
           | every migration wave, and I think it's plausible that they
           | will eventually break into the mainstream.
           | 
           | Put another way, the fediverse is the first alternative that
           | doesn't need to "succeed" in order for development to
           | continue. It's a bootstrapped model. And so it can grow
           | quietly, work out the usability kinks over time, and be ready
           | to absorb users whenever they get fed up with the centralized
           | platforms.
        
       | Workaccount2 wrote:
       | Just a reminder:
       | 
       | If you are not paying for the product, you are the product.
       | 
       | The internet culture birthed from the early days of the internet
       | "Everything is free", seems to have captured a whole generation
       | who simply have no concept of cost and value.
       | 
       | Vid.me is another start-up that comes to mind: Youtube sucks, has
       | too many ads, and sells your data. We won't have ads, won't sell
       | your data, and will host all your content.
       | 
       | It made it four years before investor cash dried up and they said
       | goodbye.
        
         | B56b wrote:
         | That's exactly it. I'm not sure what about software in
         | particular makes people think that it can exist without
         | funding. People have no problem paying for a physical product,
         | but virtual products are hard to justify for some reason.
        
           | Thrymr wrote:
           | A large part is that the marginal cost per copy approaches
           | zero. It was hard enough to charge for software when it came
           | in a box on a store shelf, now it has to be wrapped in a
           | service.
        
         | creer wrote:
         | > If you are not paying for the product, you are the product.
         | 
         | That's a fun quip (and often correct) but the world needs a way
         | to run this kind of project. Community? free? transparent? etc,
         | etc.
         | 
         | And I think this issue is not just about "free systems",
         | culture changes and day to day corruption creeps and destroys
         | everything. Even die-hard for-profit institutions (where entire
         | branches might go rogue on their own objectives.)
        
         | Earw0rm wrote:
         | It's hard to relate it to scale, is why.
         | 
         | A sandwich costs $5 everywhere, and a car costs $30k
         | everywhere, because that's just what those things cost to make.
         | 
         | It's relatively difficult to look at a web service and
         | determine whether its running costs are normal guy hobby money,
         | rich guy hobby money, or no seriously this won't last six
         | months without VC money.
         | 
         | Decentralised and P2P systems run themselves, but it's hard for
         | them to maintain a centre of gravity without offering something
         | specific, and given that the network itself can't produce value
         | out of thin air, it's probably not coincidental that the ones
         | best able to maintain gravity are offering stuff stolen from
         | elsewhere.
        
           | woah wrote:
           | Decentralized systems still need ongoing development and
           | maintenance.
        
         | yawnxyz wrote:
         | Sometimes you're still the product if you pay for the product.
         | 
         | (YouTube, Uber, Airbnb, etc...)
        
         | dredmorbius wrote:
         | There are numerous cases in which paying customers are _also_
         | the product, most notably any captive-market advertising
         | situation: transit, air travel, hospitality, cable and
         | streaming services, telecoms (wired or wireless), and more.
         | 
         | The truth is that a profit-maximising business will seek
         | revenue opportunities where it can, and if that means selling
         | _both_ services, on a single-instance or subscription basis,
         | _and_ advertising, it will do both.
         | 
         | Advertising-only or advertising-dominated businesses have a
         | strong tendency to degrade faster and far more prolifically
         | than those with mixed-model funding (I still find _The
         | Economist_ 's three-legged revenues stool fascinating:
         | subscriptions, advertising, and Economist Intelligence Unit
         | bespoke consulting and research services, each roughly 1/3 of
         | total revenues).
         | 
         | Paying alone, however, is a far-from-sufficient condition.
        
       | darnfish wrote:
       | Anyone wanna place a bet on how likely that an order from here
       | would be delivered?
       | 
       | https://ello.threadless.com/designs/white-ello-shirt/mens/t-...
        
         | ajhurliman wrote:
         | I've got 5 on it, DM for Venmo when you get your shirt or 10
         | weeks have elapsed since purchase.
        
         | slater wrote:
         | Considering that the order would be fulfilled by Threadless (an
         | Actually Good(tm) company) and not by Ello, why do you think
         | you wouldn't get the tee?
        
       | Lerc wrote:
       | Taking investor money means users will required to pay, one way
       | or another.
       | 
       | Without an explicitly capped profit, I can't see how this doesn't
       | eventually lead to exploitation of the users.
       | 
       | I would like to see a donation/optional subscription model with
       | tiered features as is seen in Patreon/Kickstarter etc. with the
       | distinction that the tiers are community wide instead of being
       | bound to the individuals donating.
       | 
       | Display an income bar. If it drops to zero the servers turn off.
       | If it drops below 1 nobody can post. If it is above 1 you have
       | Direct messaging, above 2 you have more features, etc. Keep the
       | communication clear as to what is being provided and how it is
       | being paid for.
       | 
       | Most people won't pay, but if nobody pays there is no service.
       | Its survival would depend upon providing a service that satisfies
       | enough people to sustain the support. This certainly wouldn't be
       | as lucrative as a exploit the users model, but the idea is not to
       | make a fortune, but to simply run a sustainable enterprise.
        
         | rgbrgb wrote:
         | Income bar / donation thing sounds extremely stressful and
         | precarious if you're paying anyone a salary.
         | 
         | Capped profit is interesting since it doesn't limit the
         | business model, just the likelihood of enshitification.
        
           | wavemode wrote:
           | Running a startup AT ALL is extremely stressful and
           | precarious if you're paying anyone a salary. 90% of startups
           | die in flames. Stress and danger are table stakes, I would
           | think.
        
         | d0gsg0w00f wrote:
         | Most people won't pay, but if nobody pays there is no service
         | 
         | Wouldn't this be at risk of Bystander Effect?
        
       | muppetman wrote:
       | I'm amazed by the number of people who trust websites like this
       | with their memories/diaries etc. I mean, I understand why,
       | there's an expectation when you start with these sites they'll be
       | around forever - most people don't have the time, the knowledge
       | or the desire to "do it themselves" - When livejournal was all
       | the rage I decided to do it myself with Postnuke, then (and
       | still!) Drupal. Going on 24 years now. That said, LiveJournal is
       | still going, but owned by a Russian company I think, and it could
       | turn off tomorrow.
       | 
       | I guess the flipside is, if I die tomorrow and then there's a PHP
       | error on my website, no one's ever going to know how to fix it.
       | So my memories and diary entries die as well. My "fix" for that
       | is to export the ~2400 diary entires every few months into one
       | massive PDF file.
       | 
       | Edit: I understand why this is being downvoted, I just want to
       | clarify that I didn't mean the opening sentence to read as if
       | people who trust 3rd party websites to their hosting were
       | silly/dumb, though I realise now that's how it scans. What I
       | should have said was "It's very unfortunate and a sad state of
       | the current Internet that people trust websites like this..."
        
         | creer wrote:
         | That is the main takeaway from all these. The lesson is not
         | that venture capital ruined it. But that eventually, at some
         | point, either the founder or circumstances change the thing.
         | The one permanent here is that it's bit on a digital network.
         | By definition not permanent. And so people run into this again
         | and again and still don't believe that XYZ might be next.
         | 
         | But it is, XYZ is their business platform, their social media
         | network, their journals, their photo hoster, their "lifetime
         | membership", etc. I ran into this all the time with clients.
         | They would worry about what happens to their consultant, but
         | never to their infrastructure.
         | 
         | So for businesses: have a plan B, and have usable archives /
         | backups. And for individuals, have a plan B, and have usable
         | archives / backups.
        
       | jchw wrote:
       | I know that nobody is purporting to have the answer, and I am
       | definitely not trying to suggest that there's anything wrong with
       | the conclusions drawn here--quite the contrary, actually. But, if
       | VC funding is clearly a bad way to go about things, then what is
       | the best way to structure and fund an organization built around a
       | network or service that is primarily in the game of serving user-
       | generated content and providing social networking and chatting
       | services?
       | 
       | VC funding has a lot of problems. Funding via advertising is
       | similarly fraught with peril, maybe worse, especially the most
       | lucrative stuff. You can fund things by selling premium content
       | or features, but this too is rather tenuous: if you are say,
       | SoundCloud, one of your primary customers is inevitably going to
       | be artists, who themselves are by and large not rich.
       | 
       | Not to mention, no matter who you focus your monetization on, $1
       | is infinitely more than $0, and monetizing useful features or
       | access to content will inevitably lower the overall value of your
       | platform. This is presumably part of why advertising is so
       | enticing: end users don't have to "pay" anything. Sure,
       | advertising isn't _literally_ free, but users do not have to set
       | up a payment method and take money from their account and send it
       | to yours, which is a massive difference, and massively increases
       | accessibility.
       | 
       | Then there's stuff like crowdfunding. Platforms that let you do
       | one-off funding campaigns like Kickstarter or Gofundme, or
       | platforms that let you do monthly subscriptions in exchange for
       | "rewards" like Patreon or FANBOX. There even is a platform that
       | is partly funded by monthly subscription payments (Misskey.io)
       | and although I'm sure it is a relatively small part of the
       | funding (at least I would certainly assume so) it still seems to
       | have been successful nonetheless.
       | 
       | And that's just funding. What about structure? Becoming a non-
       | profit or public benefit corporation is seemingly not any kind of
       | sure-fire way to avoid trouble, as can be seen here. While I
       | don't know exactly how the legalese works around a lot of these
       | topics, it feels like these measures simply don't do enough to
       | prevent corruption or at the very least, undesired future changes
       | in direction. You want a company to have autonomy to carry out
       | its vision and try to survive in the process, but you don't want
       | it to compromise its core values in the process. Is there
       | anything you can do legally and/or socially to provide better
       | assurances?
       | 
       | This is very frustrating because I think a lot of us see the sad
       | state of the Internet and want to do something, but it's hard to
       | work towards it because you can also see a graveyard of good
       | intentions gone horribly awry. There's all kinds of attempts to
       | work around it, but as a wise man once said, "Mo Money Mo
       | Problems". It seems that the temptation to exploit things always
       | manages to find a way around your safeguards to prevent things
       | from being exploited. Just to beat a dead horse even more,
       | remember the last time you were excited for a Google product
       | announcement, like say, GMail? I'm not saying they were ever a
       | charity or intending to be... but it's hard to not see the
       | painful way in which values that were once hard-fought slowly
       | fade away. Somehow, eventually, everything becomes rent-seeking,
       | a game to see how much money you can get back from an investment.
       | One would hope there is a way out that doesn't involve a very
       | painful upheaval of society, but over time it's getting harder
       | and harder to believe it.
        
         | creer wrote:
         | Day to day corruption is a problem. And if we had a solution,
         | it would be known (the concept of bug bounties goes in the
         | right direction, perhaps). I think this is a fundamental
         | problem and research opportunity with the legal forms for
         | institutions and staff incentives.
         | 
         | Even "winding down" doesn't necessarily need to be a problem.
         | It's all in the "how" it's done.
        
         | laurex wrote:
         | True. I'm working on a project to answer some of these
         | questions and consider innovations that might have an
         | alternative outcome. We hope to make it a collaborative project
         | with wiki-like tendencies. To me, figuring out how to create
         | technical social infrastructure that does not inherently have
         | anti-social incentives is one of the most important problems of
         | this moment.
        
       | Andrex wrote:
       | > I felt sad for the guy. It's awful going through life never
       | believing in anything.
       | 
       | Being an idealist is fine, but being a dick is not. This article
       | took on some personal schadenfreude after I read this line.
        
         | rurp wrote:
         | Hah, same here. That line jumped out to me as a big toxic red
         | flag.
         | 
         | The quotes further down from users who suddenly lost all of
         | their content were sad to read. It sucks how often regular
         | people get burned for taking tech companies at their word.
        
         | tytso wrote:
         | There was definitely a certain amount of "I told you so" vibes,
         | but I don't blame the author. It appears that he was attacked
         | by a lot of Ello founders and fans for raising some cautionary
         | notes. And as it turns out, he was right and they were wrong.
         | 
         | We would all like to have a model where users don't get charged
         | money, and yet are not the product. But I haven't seen a model
         | that works to date. In some cases, I don't mind my personal
         | date getting sold; in other cases I pay money because the
         | service is valuable. But I certainly make backups since I don't
         | assume that even when I pay $$$, that the company might not go
         | poof in the night....
        
           | SamBam wrote:
           | I believe GP was referring to the Ello founder Budnitz, who
           | said that line, as the "dick."
           | 
           | I agree. He was responding to perfectly justified -- and
           | accurate -- criticism by saying how sad it is to be a person
           | with such views of the world.
        
             | Andrex wrote:
             | Yes. The author of the article knows how to write
             | enjoyably.
             | 
             | The CEO he was quoting is the subject of my schadenfreude.
        
         | jnsie wrote:
         | It's funny, the author went out of their way to give the
         | company the benefit of the doubt...but they come across
         | extremely arrogant and sometimes vitriolic. I wouldn't have
         | been so positive
        
       | ChrisMarshallNY wrote:
       | I'm a participant in a community that explicitly refuses money
       | from outside its membership. If that means we can't grow fast, or
       | have fancy digs, so be it.
       | 
       | The reason for that, is to avoid having influence from outside.
       | Even "angel" investment can be problematic, as the "angel" has
       | the ear of the leadership.
       | 
       | I have found that even well-meaning outsiders can have highly
       | destructive influence, because they don't understand the culture
       | and they aren't the ones on the hook, if things go pear-shaped,
       | as opposed to the ones that have a real, personal, stake (like
       | all those Ello users, who lost so much).
        
         | laurex wrote:
         | It's very interesting and telling that most of the technology
         | that connects us does not have us as a customer, or a financial
         | beneficiary. One of the key aspects of technofeudalism is the
         | extractive nature of most of our platforms.
        
           | klipt wrote:
           | Because given the choice it seems many people prefer free
           | with ads to paid?
           | 
           | I'm just thankful that mobile phone networks haven't switched
           | to a "free with ads interspersed into your texts" model yet.
           | 
           | (Of course there are _still_ ads in my texts, but at least
           | those are officially spam rather than network endorsed.)
        
             | laurex wrote:
             | This is an argument for standards. You can switch messaging
             | clients. Platforms own you.
        
               | KRAKRISMOTT wrote:
               | Yes, and Gmail email is such a successful example.
        
               | NoraCodes wrote:
               | It is. I switched away from Gmail; many have.
        
               | thereisnospork wrote:
               | Imagine if the progenitors of email thought to require
               | e-stamps, say a thousand emails for a buck. There's a
               | parallel universe where 'Email co.' is a major tech
               | player comparable to Google. Not sure it's a better
               | universe, but bears consideration.
        
               | ChrisMarshallNY wrote:
               | In the late 1980s, I worked for a company that wanted to
               | do exactly that.
               | 
               | It was an X.400-based nightmare, and never took off.
        
               | unholythree wrote:
               | I remember a joke (or conspiracy theory) from the 90's
               | that the US Postal Service wanted to charge people per
               | email.
        
             | steveklabnik wrote:
             | It is always so tragic to me that, for over a decade, I
             | would have paid for Twitter. But by the time they rolled
             | that out, enough had changed that there's no way I was
             | going to pay for Twitter.
             | 
             | Market timing is hard.
        
           | renewiltord wrote:
           | That's a customer choice. Metafilter charges money and there
           | are others that do as well.
        
         | darcys22 wrote:
         | The issue is that without funding a projects velocity is low
         | and that can frustrate the community.
         | 
         | Everyone says they are on board with supporting the little
         | guys, until they hit bugs and start complaining.
        
         | wtbdrgb wrote:
         | and how much do you know about the internal workings of that
         | community? how much do you know about it's "future"? how
         | transparent is it about how much time top level management and
         | leadership are investing and how they are compensated for it?
         | how much do you know about the financial sponsors of the
         | members of your community?
        
           | ChrisMarshallNY wrote:
           | Actually, a whole lot.
           | 
           | But that's a story for a different venue...
        
       | bdcravens wrote:
       | That's a name I haven't thought of for several years.
       | 
       | I wonder if Fediverse, Blue Sky, etc will catch, or if it'll end
       | up in the same boat. Threads too (yes it's backed by Meta, but G+
       | had Google behind it ...)
        
         | mdasen wrote:
         | The reason I feel confident in the Fediverse's longevity is
         | that it's independently hosted. If BlueSky ran out of money
         | tomorrow and shut down its servers, BlueSky is gone. If
         | mastodon.social ran out of money and shut down its servers, the
         | Fediverse would continue.
         | 
         | There would be pain if mastodon.social failed with zero notice.
         | People would lose access to their accounts and would need to
         | find a new server where they'd be starting over. Some may have
         | backed up their contacts, but most wouldn't. If mastodon.social
         | gave a couple months notice, people could migrate to other
         | servers. given that mastodon.social is the largest server,
         | there would be some growing pains as other servers worked to
         | accommodate new users, but it's possible for the Fediverse to
         | continue.
         | 
         | Note, I'm not saying that the Fediverse will be incredibly
         | popular. I'm simply noting that there's an amount of
         | resilience. Once Ello's owners ran out of interest or money,
         | that was the end of Ello. Even if others had a huge interest in
         | seeing it continue, there was nothing they could do. Even if
         | the Fediverse doesn't "catch" by your definition of catching
         | on, it has caught on for enough people who have moved there and
         | will remain there.
         | 
         | That's why I feel happier in the Fediverse. It feels like
         | something the community controls. Sure, I don't run my own
         | server, but I possibly could in the future and there are enough
         | people running servers that I don't feel beholden to any one
         | entity. It just feels like something that can stick around -
         | even if the cool kids aren't interested. Enough of us like it
         | and we'll keep it going even if some of us become disinterested
         | in it.
        
           | riffic wrote:
           | the genie that is the Fediverse (based on interoperable and
           | open web protocols) is impossible to place back into its
           | bottle.
        
         | forbiddenvoid wrote:
         | There's a couple of key differences between Google backing
         | Google+ and Meta backing Threads.
         | 
         | 1. Meta's entire business is social apps, and Google's is not.
         | There are strategic differences in approach as a result. 2.
         | Google+ was an attempt to disrupt Facebook's rise at the height
         | of Facebook's popularity. People _liked_ FB then - so trying to
         | get them to switch to another product was harder. Threads
         | shipped during a time of volatility with Xitter and is poised
         | to capture more of that audience as Xitter continues to decay.
         | 
         | In terms of how things will change in the space over time,
         | Threads choice to support ActivityPub will probably mean good
         | things for the Fediverse in general, at least in the short term
         | (3E notwithstanding), and could ultimately serve to be the
         | arbiter that kills BlueSky and the AT Protocol.
        
       | Rodeoclash wrote:
       | I wonder if it's possible to take the Wikipedia model (open
       | source, non profit entity) and use that to build a social
       | network.
        
         | novagameco wrote:
         | I always thought it would be cool if every NPR/PBS station also
         | ran Fediverse nodes of mastodon or whatever the Fediverse
         | version of Facebook is. Would provide a public-funded option
         | with more transparency
        
           | munchler wrote:
           | Deleted
        
           | rglullis wrote:
           | The BBC started running their own instance as an experiment,
           | and it seems that they will _not_ keep it running:
           | https://mstdn.social/@isleofmandan/111775751771437531
        
           | Rodeoclash wrote:
           | Yeah, I like the federated idea, but I think it had its
           | chance when Elon took over Twitter and they never managed to
           | capture the exodus of users in any significant way. The
           | barrier to entry was just too high (but they have taken great
           | steps to reduce the complexity).
        
             | novagameco wrote:
             | Well my experience with Mastodon has been that it's almost
             | entirely tech people who are joining mastodon for the
             | technical novelty. If every NPR/PBS station launched a
             | social network concurrently, then people would quickly find
             | other people on the platform to connect with
        
         | vdaea wrote:
         | Wikipedia is special in that 1) it's very cacheable so the
         | infrastructure costs are low and 2) it's not too expensive in
         | terms of development since I assume people don't expect many
         | features.
        
           | paulddraper wrote:
           | It also has a better charity story, because "summarizing the
           | knowledge of mankind" seems a tag more lofty than a social
           | network.
           | 
           | (Even if that's not the case...)
        
         | ThinkingGuy wrote:
         | Like WT Social?
         | 
         | https://en.wikipedia.org/wiki/WT_Social
         | 
         | https://wt.social/
        
       | Kye wrote:
       | Makes me think about how Bluesky is also a Public Benefit
       | Corporation and took $8m in funding.
        
         | StreetChief wrote:
         | Those who don't learn history are doomed to repeat it, or
         | whatever the saying is.
        
           | caboteria wrote:
           | That, mixed with "there's a sucker born every minute".
        
       | zzzeek wrote:
       | this post is a bit of a "nyah nyah I told you so", but since
       | whoever was running Ello did not give any heads up to users a way
       | to get at their content, they just allowed the thing to buzz into
       | the ground and they shut off all communication, they deserve it.
        
       | wly_cdgr wrote:
       | Oh wow, I'd totally forgotten about Ello. They were never going
       | mainstream with that yuppie aesthetic
        
       | thimkerbell wrote:
       | HN is just doomy-doomy-doomy today. Sad.
        
       | riffic wrote:
       | defunct social networking services, a list from wikipedia:
       | 
       | https://en.wikipedia.org/wiki/List_of_defunct_social_network...
        
       | jl6 wrote:
       | Looks like Archive Team didn't manage to get anything before it
       | disappeared :(
        
       | paulddraper wrote:
       | > I figured I'd publish a short list of things Ello will never
       | do:
       | 
       | > ...
       | 
       | > 2. Tolerate hate. Ello has many tools, some visible and others
       | not, that help keep this network positive.
       | 
       | Geez, it's hard to take anything said as authentic with a
       | statement like that. How can you talk about things without
       | "hate"?
       | 
       | "I hate shoveling snow." "I hate terrorists." "I hate this
       | political candidate." "I hate Taylor Swift music."
        
         | jeffbee wrote:
         | How about "I hate reductive hackernewses who fail to engage
         | constructively with the discourse and instead turn to gotcha
         | language that 9-year-olds think is terribly clever"?
        
           | paulddraper wrote:
           | Sure, great example!
        
           | zemvpferreira wrote:
           | He's right though. "Not tolerating hate" is a paperthin
           | principle, that would stand up to as much scrutiny as
           | everything else Ello stood for, in hindsight. re, it was all
           | bullshit and the warning signs should be called out as such
           | so we know next time someone tries to bullshit us.
        
         | wideopenjake wrote:
         | I was head of technology for another "make a better world"
         | social network, and we approached fostering positivity as a
         | practice of encouraging constructive interaction and
         | discouraging _destructive_ interaction.
         | 
         | In other words, being directly abusive toward others was
         | obviously destructive and discouraged, but disagreement, even
         | when quite strong, was great, as long as everyone involved
         | maintained a level of basic respect when interacting with each
         | other.
         | 
         | There's also a big difference between vehement dislike of a
         | distant thing, concept or person, especially if one can express
         | their reasons well, and using slurs or advocating violence or
         | harm. I imagine here they used 'hate' to stand in for 'hate
         | speech', but not being in their minds - I really don't know.
        
         | edm0nd wrote:
         | It's universally known that that means things like racist
         | imagery/text content, not content like "I hate cake" or Tswift.
        
       | wideopenjake wrote:
       | Early on in Ello's life, possibly year 1, I interviewed for a job
       | with them - back when their office was basically one floor of a
       | residence, and all the engineers pretty much worked at a single
       | dinner table packed with monitors. I probably scored the
       | interview because of my previous experience as CTO of a startup
       | social network for people who wanted social change (which we sold
       | to Gaiam, and that's how it eventually died a few years later,
       | but at least I ended up in the Denver/Boulder area).
       | 
       | Anyway, the code test part of the interview involved pairing with
       | another engineer on a small portion of the ello User model (their
       | application was built with Ruby on Rails at the time), and I
       | remember being rather underwhelmed by what they asked me to do,
       | at least in terms of whether it provided a decent test of my
       | abilities. I ended up sending a follow-up email expressing that,
       | along with numerous polished samples of other project work.
       | 
       | They ended up passing on me, but I stayed a member of ello for a
       | while longer because I thought the idea might have promise. Maybe
       | I left too early, but I eventually ditched it because... there
       | was no "there", there.
       | 
       | I liked their general idea, but... they could have done so much
       | more with it, even with a small team. As it was, I left before
       | ello ever got out of its "tumblr clone with way too much empty
       | space" phase - if it ever did.
       | 
       | RIP
        
       | reso wrote:
       | I'm not sure why this post focuses so much on the angel
       | investment. There are probably 10 reasons why Ello failed,
       | starting with the fact that bootstrapping social network
       | userbases is hard, and ending with users won't pay for social
       | networks. None of these are directly related to the fact they
       | built the site with investor money and not volunteer hours.
        
         | urbandw311er wrote:
         | I think it's fair critique for the post to focus on the VC (not
         | angel) investment -- the expectations of VCs and pressure to
         | deliver a profit could easily have been a significant factor in
         | the decision made by the CEO to focus on substantial revenue
         | growth.
        
       | otteromkram wrote:
       | I don't see why Ello didn't just turn into a Pinterest + Etsy +
       | DeviantArt hybrid.
       | 
       | Let artists show off work, let them seem their art/products, take
       | a percentage of the sale as profit.
       | 
       | Maybe that's a bad business model for a social-media-first
       | platform.
        
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